Ben Bernanke

History proves . . . that a smart central bank can protect the economy and the financial sector from the nastier side effects of a stock market collapse.

Ben Shalom Bernanke (born December 13, 1953) is the Chairman of the Board of Governors of the United States Federal Reserve.

Sourced

• There’s no denying that a collapse in stock prices today would pose serious macroeconomic challenges for the United States. Consumer spending would slow, and the U.S. economy would become less of a magnet for foreign investors. Economic growth, which in any case has recently been at unsustainable levels, would decline somewhat. History proves, however, that a smart central bank can protect the economy and the financial sector from the nastier side effects of a stock market collapse.
  • "A Crash Course for Central Bankers," Foreign Policy (September/October 2000)

• The economic repercussions of a stock market crash depend less on the severity of the crash itself than on the response of economic policymakers, particularly central bankers.
  • "A Crash Course for Central Bankers," Foreign Policy (September/October 2000)

• Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve System. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again.
  • "Remarks by Governor Ben S. Bernanke at the Conference to Honor Milton Friedman, University of Chicago, Chicago, Illinois," federalreserve.gov (2002-11-08)
  • Commenting to Milton Friedman's public statement that the Great Depression was caused by the Federal Reserve Bank

• House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals, including robust growth in jobs and incomes, low mortgage rates, steady rates of household formation, and factors that limit the expansion of housing supply in some areas.
  • October 20, 2005, in testimony to Congress's Joint Economic Committee.

• To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above.
  • Speech given on Apr. 7, 2010 to the Dallas Regional Chamber of Commerce, "Economic Challenges: Past, Present and Future". (See pages 13-14 of the speech transcript).

• Economics is a highly sophisticated field of thought that is superb at explaining to policymakers precisely why the choices they made in the past were wrong. About the future, not so much. However, careful economic analysis does have one important benefit, which is that it can help kill ideas that are completely logically inconsistent or wildly at variance with the data. This insight covers at least 90 percent of proposed economic policies.
  • The Ten Suggestions. Speech given at Baccalaureate Ceremony at Princeton University, Princeton, New Jersey, June 2, 2013.